Truist(TFC) - 2024 Q3 - Quarterly Report

Financial Performance - Truist Financial Corporation reported a net interest income (NII) of $1.5 billion for the last quarter, reflecting a 10% increase year-over-year[6]. - The company achieved a net interest margin (NIM) of 3.2%, up from 2.9% in the previous year, indicating improved profitability on interest-earning assets[6]. - Net income for the three months ended September 30, 2024, was$ 1,442 million, up from $1,183 million in the same period of 2023, marking a growth of 22%[11]. - Basic earnings per share (EPS) for the three months ended September 30, 2024, was$ 1.00, compared to $0.80 for the same period in 2023, an increase of 25%[10]. - Truist reported total revenue of$ 2,388 million for the quarter, reflecting a 0.76% increase compared to the previous period[59]. - Segment net income from continuing operations for the three months ended September 30, 2024, was $1,439 million, compared to$ 1,109 million for the same period in 2023, showing a growth of 29.7%[166]. - For the nine months ended September 30, 2024, net interest income was $10,501 million, down from$ 11,005 million in the same period of 2023, reflecting a decrease of 4.6%[166]. - Segment net income from continuing operations for the nine months ended September 30, 2024, was $2,681 million, compared to$ 3,688 million for the same period in 2023, representing a decline of 27.3%[166]. Asset and Liability Management - Truist's total assets reached $500 billion, marking a 5% growth compared to the previous quarter[6]. - Total assets decreased to$ 523,434 million as of September 30, 2024, from $535,349 million at December 31, 2023, representing a decline of approximately 2.1%[9]. - Total liabilities decreased to$ 457,738 million as of September 30, 2024, from $476,096 million at December 31, 2023, a reduction of approximately 3.9%[9]. - Shareholders' equity increased to$ 65,696 million as of September 30, 2024, from $59,253 million at December 31, 2023, an increase of 10.7%[9]. - The company reported a total of$ 51,157 million in loans, down from $69,070 million, a decrease of about 26% year-over-year[42]. Credit Quality and Loan Performance - Truist's nonperforming loans (NPL) ratio improved to 0.5%, down from 0.7% a year ago, indicating better asset quality[6]. - The company reported a provision for credit losses of$ 448 million for the three months ended September 30, 2024, down from $497 million in the same period of 2023, a decrease of 9.8%[10]. - Nonperforming loans totaled$ 10,004 million, a significant increase from $6,647 million, indicating a rise of approximately 50.5%[42]. - The total amount of loans 30-89 days past due was$ 1,769 million, while loans 90 days or more past due totaled $518 million[39]. - The total for nonperforming consumer loans is$ 63 million, a decrease from $14 million in 2023[41]. Investments and Securities - The total available-for-sale (AFS) securities, excluding portfolio level basis adjustments, amounted to$ 64,111 million as of September 30, 2024, down from $68,516 million as of December 31, 2023, reflecting a decrease of 6.9%[32]. - The net unrealized losses for AFS securities were$ 4,736 million as of September 30, 2024, compared to $11,483 million as of December 31, 2023, showing a significant reduction in losses[32]. - The fair value of collateral permitted to be resold or repledged rose to$ 2,398 million as of September 30, 2024, up from $2,175 million as of December 31, 2023, indicating a 10.3% increase[30]. - The company recognized gross realized losses of$ 6,650 million for the nine months ended September 30, 2024, following the sale of $27.7 billion in lower-yielding investment securities[36]. Strategic Initiatives - The company plans to expand its market presence by opening 20 new branches in key growth areas over the next year[6]. - Truist is investing$ 200 million in technology upgrades to enhance digital banking services and customer experience[6]. - The company is focusing on sustainable finance initiatives, aiming to allocate $10 billion towards green projects over the next five years[6]. - Truist announced a stock repurchase authorization of up to$ 5.0 billion, with $503 million of common stock repurchased in Q3 2024, representing 11.7 million shares[93]. Legal and Regulatory Matters - The company is involved in ongoing legal proceedings that may result in significant liabilities, including a class action seeking up to$ 452 million in overdraft fees[117]. - Estimated reasonably possible losses related to legal proceedings are up to approximately $375 million as of September 30, 2024[115]. - The special assessment from the FDIC is$ 579 million, with $507 million recognized in Q4 2023 and$ 72 million for the nine months ended September 30, 2024[120]. Economic Outlook and Provisions - The overall economic forecast for the ACL estimate at September 30, 2024 included GDP growth in the low-single digits and an unemployment rate near the mid-single digits[48]. - Adjustments to the ACL estimate include considerations for current and expected events or risks not captured by loss forecasting models[49].